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Fractional shares and voting rights

Certain investors have the right to vote on topics that affect business performance of the company they invest in, such as mergers and acquisitions, dividend distributions, new securities, and who is elected to the board of directors.

If you happen to have fractional shares of a given company, you will not have voting rights regarding the fraction amount. If your investment includes voting rights, you will receive them after you have purchased a complete share. Therefore, you must have at least 1 share to be entitled to a vote. Also, only whole shares amount to voting rights, so in the case of owning 1.5 shares, only 1 vote will be given.

Investors with voting rights will receive an email that contains all of the topics to be voted on, and allows shareholders to vote without physically attending the voting meeting.

For more information, view Passfolio Securities’ fractional share disclosure and the SEC Investor Alert: Fractional Share Investing – Buying a Slice Instead of the Whole Share.

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